Republican Hats Off; American Hats On

Members of the California delegation to the Republican Convention in St. Paul, Minnesota responded to Senator John McCain’s request to limit convention activities the first day as Hurricane Gustav threatens the Southeastern United States. McCain wanted the focus to be on the potential natural disaster the hurricane might cause in the Gulf States, and declared that conventioneers should take their “Republican hats off and put their American hats on.”

Public Opinion Strategies pollster and GOP delegate Steve Kinney said, “This is what should happen. This is the John McCain we know. He would never put something over the interest of the country.”

Board of Equalization Member Michelle Steel understood the Senator’s motives but also emphasized that the business of the convention must go forward.

Rumored Budget Plan Would Raise Local Sales Tax by Majority Vote

A rumor is floating in Sacramento about a budget solution re-doing part of the “triple flip” budget compromise of a few years ago. That compromise increased state sales tax, decreased local sales tax by an equal amount and backfilled the local sales tax loss by directing more property tax to the locals/schools.

This resulted in higher general fund money going to schools. The plan suggests the property tax would be taken back and funneled to the schools through the state meaning a smaller state obligation to the schools and therefore more money stays in the state general fund. At the same time, the local sales tax reduction would be eliminated essentially raising sales tax on the local level. This would be accomplished with a majority vote of the legislature.

CA Prof Nailed Palin VP Pick 10 Months Ago

John Pitney, professor of government at Claremont McKenna College spoke to the annual VICA (Valley Industry and Commerce Association) meeting in Studio City last October on the coming presidential race and offered a surprise suggestion for a Republican Vice-Presidential candidate: Alaska Governor Sarah Palin.

Many of the attendees at the conference asked: Who? Many Americans this morning are probably asking the same question as John McCain announced he indeed selected Gov. Palin as his running mate.

Pitney said he looked to Palin at the time because “all the Republican presidential candidates were white males of a certain age and practical politics indicates you should balance the ticket.” Pitney said the issue of corruption in Washington D.C,. was high and Palin is seen as a reformer. “If you are looking for someone who is an outsider, you can’t get much farther than Alaska.”

McCain Closing the Gap in California

What’s up with John McCain closing in on Barack Obama in the recent Public Policy Institute of California poll? Most pundits have written off this state for McCain saying Obama will not have to campaign here or spend money here. It was in the bag.

But when a 24-point Obama lead in some early polls falls to only a 9-point lead in the most recent PPIC poll, it has to give both sides pause.

The PPIC poll was conducted before Senator Joe Biden was added to the Democratic ticket and before Obama’s speech at the Democratic Convention.

Mark Baldassare, the PPIC president and director of the poll says his survey found Independent voters moving toward McCain. “Independents are still finding out about the candidates. They weren’t that involved in the primary elections for the most part and are just getting to know the candidates,” Baldassare said.

Poll: California is Still Fiscally Conservative

What jumped out at me reading the results of the new Public Policy Institute of California (PPIC) poll is that fiscal conservatism is still strong in the Golden State. While the poll indicated that a plurality of those polled (44%) felt that a mix of tax increases and spending cuts should be used to solve the budget crisis, nearly as many likely voters (38%) said the budget hole should be closed only with cuts.

On top of that, almost all voters think the state wastes money. That statement is not an exaggeration. It truly is almost ALL likely voters according to the PPIC survey. Nearly two-thirds of the likely voters (63%) said the state wastes a lot of money, and an additional 31% said the state wastes some money. A staggering total of 94% see the state as wasteful.

Furthermore, jobs and the economy is the big issue with voters right now. Forty-two percent say that is the number one issue in California and taxes is second at 10%. The frequent number one issue, education, was ranked fourth at just 6% in this poll.

To Sign or Not To Sign — That shouldn’t be the question

The Governor said he would not sign any bills that came his way until the budget was settled — then three weeks later, lo and behold, he asks the legislature to send him four bills that must be signed in the next few days for these measures to make the November ballot. You can read Kevin Yamamura’s Sacramento Bee story here.

Okay, I understand there is a certain urgency to these four bills because they require voter approval. The bills include: 1) clean up provisions for Proposition 1, the high speed rail bond; 2) a water bond; 3) a budget reform measure that includes provisions for a rainy-day fund; and 4) a measure to improve the lottery so that it may be more appealing for investors.

But the fact remains that the Governor made a bold stand to kick-start the legislators into doing their job of presenting him with a budget … then he backed off. We’re not going to get anywhere with this delayed budget fiasco if the governor doesn’t hold legislators’ feet to the fire.

Is it Time for a State Constitutional Convention?

With frustration exhibited in many quarters about the difficulty to govern California, I wondered if anyone would call for a state constitutional convention to re-work government from the ground up. Somebody has. Jim Wunderman of the Bay Area Council business group published an op-ed piece in the San Francisco Chronicle suggesting just that.

Spurred on by another late budget, Wunderman is promoting the idea of a constitutional convention to change a California government he says suffers from “drastic dysfunction.”

Opening up the Constitution is fraught with dangers. California’s only effort to overhaul the constitution in a convention occurred in 1879. Delegates from the Workingman’s Party and the Grangers captured that convention. They were able to produce a document that put into the constitution their agenda, which included regulation of the railroads, new tax policies and restrictions on Chinese from owning property or holding certain jobs.

Increasing Taxes, Increasing Unemployment

On Friday, it was announced California’s unemployment rate hit a twelve-year high at 7.3%. On Sunday, the legislature met in extraordinary session to vote on a budget plan that would raise the income tax on upper income taxpayers and raise the corporate tax. The measure was defeated, failing to secure a two-thirds vote.

Good thing because, had the plan succeeded, the unemployment rate would likely jump even higher.

Taking money out of the economy from businesses and those who can invest in job creating enterprises is not the way to confront an unemployment crisis. It would just exacerbate the problem. Corporate tax collection was lower than expected in July according to the Controller’s monthly report, down almost 18% from the projection in the Governor’s May revise. Raising taxes on businesses won’t help that situation.

Goodbye to the Budget Nun

California’s Legislative Analyst, Elizabeth Hill, is retiring. It has been her job for 22 years to run the Legislative Analyst’s Office and present analysis on legislative measures, the governor’s budget and a wide array of initiative proposals. Beyond that she has led the LAO in preparing studies to bring perspective to many of California’s governmental conundrums. I remember carefully studying one such book entitled Making Government Make Sense. I didn’t agree with all the recommendations but I applauded the effort.

Yesterday the Senate took time to praise Elizabeth Hill as reported by Capitol Alert’s Shane Goldmacher. Hill heard justifiable tributes from both sides of the political aisle. Frequently, the 120 members of the legislature are referred to as Hill’s 120 bosses. However, Hill looked at these legislators as her clients delivering her observations in a straight talk manner that would humble John McCain.

And she never forgot that she had a few million more clients beyond the legislature – the people of California.